Pertemps Recruitment Partnership Ltd v Revenue & Customs [2010] UKFTT 218 (TC) (13 May 2010)

Pertemps Recruitment Partnership Ltd v Revenue & Customs [2010] UKFTT 218 (TC) (13 May 2010)

Mistaken payments received by Pertemps from customers, arising from the mistaken belief that money was owed for services supplied in the course of trade, are receipts arising from Pertemps’ trade and are therefore taxable as trading profits, regardless of the customer's right to restitution.

Citation
[2010] UKFTT 218 (TC)
Parties
Appellant: Pertemps Recruitment Partnership Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
13 May 2010
Procedural Posture
Corporation Tax Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
Trading Receipts, Corporation Tax, Mistaken Payments, Profits of Trade, Restitution
Tax Law Corporate Law Trading Receipts Corporation Tax Mistaken Payments Profits of Trade Restitution

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 17 Party arguments 2 Amounts and remedies 12
Sign in to unlock

Parties

Pertemps Recruitment Partnership Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Corporation Tax Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether sums of money mistakenly paid by customers to Pertemps and not repaid are liable to corporation tax as trading receipts under section 18(3) ICTA 1988.

Ratio Decidendi

Mistaken payments received by Pertemps from customers, arising from the mistaken belief that money was owed for services supplied in the course of trade, are receipts arising from Pertemps’ trade and are therefore taxable as trading profits, regardless of the customer's right to restitution.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Pertemps Recruitment Partnership Ltd is dismissed.